The World Bank Public Financial Management Capacity Building (P090265)

Transcription

1 Public Disclosure Authorized AFRICA Chad Governance Global Practice IBRD/IDA Technical Assistance Loan FY 2007 Seq No: 16 ARCHIVED on 28-Dec-2015 ISR22054 Implementing Agencies: Secretariat Technique Permanent du PAMFIP Public Disclosure Authorized Key Dates Key Project Dates Bank Approval Date:24-May-2007 Planned Mid Term Review Date:01-May-2010 Original Closing Date:31-Dec-2012 Project Development Objectives Effectiveness Date:22-Apr-2009 Actual Mid-Term Review Date:10-Jun-2011 Revised Closing Date:31-Dec-2016 Public Disclosure Authorized Project Development Objective (from Project Appraisal Document) The overall development objective of the proposed operation is to help the GoC improve the quality of its PFM system to increase the efficient and transparent use of public resources, in particular the expected oil revenue, to attain MDGs. To this end, the proposed IDA project will support the implementation of the Government PAMFIP action plan for modernization of PFM in a concerted manner with other donors. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Public Disclosure Authorized Name Public Finance and Financial Accountability:(Cost $2.80 M) Human Resource Development:(Cost $0.10 M) Integrated Financial Management Information System:(Cost $4.80 M) Coordination, Monitoring and Evaluation of PAMFIP:(Cost $2.30 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Unsatisfactory Overall Risk Rating Moderate Moderate 12/28/2015 Page 1 of 13

2 Implementation Status and Key Decisions The Progress towards achievement of the PDO and the Overall Implementation Progress (IP) ratings remained unchanged to MS and MU despite some significant improvements noted and progress achieved by the government since the supervision mission of February The efforts of the government combined with the improvements observed in the implementation of the project activities over the past five (5) months will yield tangible results that will impact the overall performance of the project in the coming months. Although the original project has made a full disbursement, the disbursement rate of the additional financing is very low estimated at 9% (e.g. XAF 500 million expensed out of XAF 5.5 billion allocated to the additional financing) almost 13.5 months before the initial closing date. At this stage, the mission concluded to a risk of non-utilization of the entire budget allocated to the additional financing; thus a risk of non-achievement of some of the key results indicators of the project. The main reasons of the this low disbursement rate were identified and discussed with the government high ranking officials at the Ministry of finance and the Ministry of planning as well as with the beneficiaries of the project activities for urgent actions. The reasons for low disbursement include among others: (i) the long delays in the procurement process; and (ii) the ineffectiveness of the steering committee. The government is committed to continue its efforts to catch up with the delays encountered during the first months of the project effectiveness date and to address the constraints impeding effective implementation of the project activities. The government has already started the implementation of some of the measures agreed during the mission including (i) the clearance of the backlog of procurement package pending at the OCMP or at the Ministry of finances; (ii) signing of a MOU with the government of Burkina Faso to transfer the CIE, the integrated accounting software; and (iii) discussions with other IT providers to finalize the list of IT activities to be implemented during the additional financing of this project. This project contributes significantly to the implementation of the government of Chad PFM reforms agenda mainly the transposition and operationalization of the CEMAC directives that are coming due by December 31, Furthermore, significant progress were noted in the implementation of the project activities including several on-going procurement activities. Therefore, to avoid any risk as described above and ensure that all the activities for which the procurement process is underway or about to be launched, will be completed by project closing date, the Bank confirmed its availability to support the government of Chad to address these challenges. 12/28/2015 Page 2 of 13

3 Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Substantial Substantial 12/28/2015 Page 3 of 13

4 Macroeconomic -- Substantial Substantial Sector Strategies and Policies -- Low Low Technical Design of Project or Program -- Low Low Institutional Capacity for Implementation and Sustainability -- Low Low Fiduciary -- Moderate Substantial Environment and Social -- Low Low Stakeholders -- Moderate Moderate Other Overall -- Moderate Moderate Results Project Development Objective Indicators PHINDPDOTBL Indicator One (former 3) : In-year Budget Reporting (Text, Custom) The Expenditure chain Circuit Integré des Dépenses "CID" current IFMIS is regularly producing a table (Tableau des quatre phases), which is inaccurate (data are not consistent with approved budget), non comprehensive (does not include salaries and external financing and does not consolidate various budget items), and does not cover all payments. it is currently useless for any meaningful follow up of budget execution. The expenditure circuit is fully computerized, and has been able to instantaneously report the 4 successive budgetary phases (commitment, validation, authorization, payment) of budget execution for all major expenditure categories since September These table are issued timely within four weeks after period end. The tables are used to prepare the quarterly budget execution (expenditures). The Table for january 2015 and february 2015 have been submitted to the Bank on march 5, However, these tables do not cover as february 2015, the expenditure related to malitary The expenditure circuit is fully computerized, and has been able to instantaneously report the 4 successive budgetary phases (commitment, validation, authorization, payment) of budget execution for all major expenditure categories since September 2014 except for the salaries of militaries. These Tables are used for the preparation of the reports of the quarterly budget execution (limited to expenditures) The report of Q3 for 2015 budget execution was not completed at the time of the mission; thus a risk of not meeting this result indicator. Based on the CID/IFMIS, a four-phase table is issued every quarter within 4 weeks after period end automatically including salaries and including all payments. Quarterly budget execution reports are produced in a timely manner (4 weeks following the end of each quarter) Date 31-Dec Feb Nov Dec /28/2015 Page 4 of 13

5 PHINDPDOTBL Indicator Two (former 4a): The Treasury Annual Financial Statements (Comptes de Gestion du Trésor) are produced and submitted to the Court of Accounts (SAI) (Text, Custom) 2004 Treasury Statement were produced for COA at the end of September treasury accounts were not yet produced for COA, at the end of September Budget Settlement Law has been prepared by the Government and submitted in October 2014 to the Court of Accounts Budget Settlement Law has been prepared by the Government and submitted in October 2014 to the Court of Accounts for the certificate of conformity. For the first time, the MFB issued a circular which details the chronology and calendar for the preparation and submission of the Budget Settlement Law (BSL) to the court of account to request its Certificate of conformity. This circular requires the government to submit by August 12, 2015, the 2014 BSL to the Court of Account. Unfortunately, this date was not met by the MFB documented Treasury Annual Financial Statements have been submitted to the Court of Accounts by end of december Date 31-Dec Feb Nov Dec-2016 PHINDPDOTBL Indicator Three : Expenditure credibility (Text, Custom) Difference between Budget and execution (actual) is superoir or less to 15 percent in Difference between Budget and execution is 19 percent. In 2013, the difference was 15.6 percent In 2014, the difference between approved budget and execution is estimated at 19 percent ( to be validated) In 2013, the difference was 15.6 percent In 2014, the difference between approved budget and execution is estimated at 12 percent ( to be confirmed by end of Dec 2015) Aggregate expenditure out-turn compared to original approved budget: 2014: inferior to +/- 5% 12/28/2015 Page 5 of 13

6 Date 31-Dec Feb Nov Dec-2016 PHINDPDOTBL Indicator Four : Budget information is available to the public (Text, Custom) The enacted Finance Law (FL) ( ) is published on a website. Neither the annexes nor the budget, except the 2012 budget, nor budget execution reports are published 1. The FLs for 2012, 2013, 2014 and 2015 are published on the website of the PAMFIP: 2. Budget execution of Q1, Q2 and Q3 for 2014 were published on the PAMFIP and ministry of finance website: the budget execution report for Q4 of 2014 was in at the finale stage of its preparation at the time of the mission citizens budget was not prepared but it is expected that an expert will be identified to support the government in the preparation of the 2015 budget annual execution report of the Plan National de Development (PND) is available but not published yet. The report has been used by the government of Chad during the consultative meeting in Paris. The 2014 execution report of the PND is not prepared yet. 1. The FLs for 2012, 2013, 2014 and 2015 are published on the website of the PAMFIP: 2. Budget execution of Q1, Q2 and Q3 for 2014 were published on the PAMFIP and ministry of finance website: the budget execution report for Q3 of 2015 was not finalized at the time of the mission. 3. The format and content of the citizens budget was adopted during a workshop in July 2015; the workshop was funded by PARCAFIP2 resources annual execution report of the Plan National de Development (PND) was adopted by the government in September 2015 and published on PAMFIP website. 5. A committee of Experts is currently working on the new PND called Tchad Vision This document will be supported by a short term action plan All enacted FLs (since 2012) with annexes, state budget, quarterly budget execution reports and TOFE, end of year budget execution report (2015), citizens budget (2016), 2015 annual Execution report of the Plan National de Development are published. Date 31-Dec Feb Nov Dec /28/2015 Page 6 of 13

7 PHINDPDOTBL Indicator Five : Completeness and timeliness of central government debt records and Medium-term debt strategy (Text, Custom) Debt records are incomplete and not updated on a regularly basis This is a need Indicator added to the PDO following the AF. The process to contract with CNUCED, the UN Agency specialized in debt management and who will provide technical assistance to the government is ongoing. The TORs of the mission and the draft contract between the government of Chad and CNUCED have been prepared. Progress toward achieving this Indicator will be better assessed during the next mission. 1. Workshop to validate the debt data in SYGADE 3.5 by the team of CNUCED was conducted on August 22, 2015; the remaining activities related to this contract being implemented. 2. The contracts for the acquisitions of IT equipment and power generator have been signed but not executed yet. 3. The negotiations of the contract with CNUCED for the acquisition of SYGADE 6 are expected to be completed by end of January There are complete debt records within a three-month lag for central government domestic, external, and guaranteed debt, as well as all debt-related transactions, including past debt relief and debt restructuring.. 2. A mediumterm debt strategy including all typical analysis of medium term debt strategies, covering 90% of existing and expected central government debt and prepared by all concerned entities have been adopted by the Cabinet and made publicly available. Date 31-Dec Feb Nov Dec-2016 Overall Comments Progress towards the achievement of the key PDO Indicators has been very slow since the last SPN mission of Febraury This is to to the fact that during this period, the project struggled to catch up with the delays occured during the first months of the AF effectiveness. With the progress noted over the last 5 months mainly on the procurement side, it is expected that in the coming 3 to 7 months, most of the contracts will be signed and the activities implemented. The impact of the implementation of these activities will be reflected in the next ISR. However, to avoid any risk of non utilization of 100% of project ressources, an extension up to 12 months of the closing date of the project should be considered. Intermediate Results Indicators 12/28/2015 Page 7 of 13

8 PHINDIRITBL Intermediate Result Indicator One: (former 5 a) Preparation of multiyear fiscal forecasts and functional allocations for and (Text, Custom) Since 2010, Fiscal and macroeconomic projects for N+3 are prepared during budget preparation (Q1) based on economic classification. A global MTEF is prepared and budget ceilings are defined. Costed sector strategies for education, health, rural development, water and sanitation exists but are inconsistent with fiscal aggregates. Linkages between investment budgets and forward expenditure estimates are weak. Budget discussions focus only on the budget for next year. A global MTEF has been prepared at central but is not discussed. There is a macro-fiscal projection. Discussions are on-going between the Directorate of budget, the Center of IT and the ministry of planning to select a consultant to assist the government to strengthen the investment management system. Budget discussions focus only on the budget for next year. A global MTEF has been prepared at central but is not discussed. There is a macro-fiscal projection. Discussions are on-going between the Directorate of budget, the Center of IT and the ministry of planning to select a consultant to assist the government to strengthen the investment management system. The design and implementation of a new and computerized will take into account the PGA already installed at the MPCI and used to manage investment projects financed by donors; 1. Fiscal and macroeconomic projections for N+3 are prepared during budget preparation (Q1) based on economic/functi onal classification; 2. A global MTEF is prepared and budget ceilings are defined; 3. Statements of sector strategies (at least for key sectors including education, health, rural development, water and sanitation) exist and are fully costed, broadly consistent with fiscal forecasts, for sectors representing 25-75% of primary expenditure. 4. An investment management system is operation and Investment decisions have links to sector strategies. Date 31-Dec Feb Nov Dec /28/2015 Page 8 of 13

9 PHINDIRITBL PHINDIRITBL Intermediate Result Indicator Two: Orderliness and participation in the annual budget process (Text, Custom) A budget calendar exists and has been adhered to since 2010, though with some delays. A budget circular has been prepared every year since Budget has been approved by Parliament before the start of each fiscal year since Calendar budget is issued and available since 2011 and is being used for preparation of the government macrofiscal framework related budget and are produced on time; 2. Due to administrative constraints, these documents were not signed on time leading to some delays in the budget discussions (Y2012, 2013 and 2014); Budget discussions were completed within the prescribed timeframe without any delay; 4. All the ministries and institutions participated in the budget discussions and the final report is available at the Directorate of Budget. 1. A new arrete N 642/PR/PM/2015 dated on February 2, 2015 was issued by the MP for the preparation 2016 budget. This arrete provides details on the process and timing of the preparation of budget. 2. On a technical point of view, compliance with the steps, timing of the preparation for each step is met. Discussions on the budget (conferences budgétaires) started on July 29, 2015 with the participation of all the ministries and institutions. However, the 2016 budget was not adopted by the government at the time of the mission Budget discussions were completed within the prescribed timeframe; 4. The final report is available at the Directorate of Budget 1. A clear annual budget calendar exists. 2. The calendar allows MDAs reasonable time (at least four weeks from receipt of the budget circular). 3. A budget circular is issued to MDAs, including ceilings for individual administrative units or functional areas. 4. Budget ceilings are approved by cabinet before the circular is issued. Date 31-Dec Feb Nov Dec-2016 Intermediate Result Indicator Three: The Organic Finance Law (LoLF) and associated CEMAC directives on PFM (Text, Custom) 1..The LoLF was adopted by by Parliament in January 2014 and enacted in February A draft action plan for the implementation of the LoLF has been prepared No tangible process observed in th implementation of the application of the LOLF and CEMAC directives. The implementation process of the LOLF started but with delays. Most the CEMAC directives have been transposited into national laws but some The implementation phase of the LOLF has started with the selection of 10 local experts and the almost completed negotiations of the contract of the Sr AT; The following CEMAC directives have been adopted (RGCP and LOLF). However, the directives related to 1. Implementation of the LoLF and CEMAC directives on PFM have started. 2. The LoLF action plan is implemented as scheduled. 12/28/2015 Page 9 of 13

10 PHINDIRITBL PHINDIRITBL delays observed in the validations by the officials. CEMAC directives related to transparency code and good governance are in the transposition phase. transparency code and good governance have been drafted by need to be communicated to Secretariat of CEMAC for certificate of conformity before they could be adopted by the government and decrees signed. The remaining directives are completed on a technical point of view but not adopted yet. Date 28-Feb Feb Nov Dec-2016 Intermediate Result Indicator Four: An operational strategy, and a multi-year budget and programming for the modernization of the IT system are available (Text, Custom) A strategy has been adopted and implemented Activity not implemented. ToR of IT blueprint of the MFB and MPIC drafted and are in the process of finalization and approval by the Bank. Activity not implemented yet. The selection of a firm to design the IT blueprint (SDI) is awaiting the OCMP certificate of conformity. Implementation of (new) strategy continued in a satisfactory manner Date 31-Dec Feb Feb Dec-2016 Intermediate Result Indicator Five: CID/IFMIS coverage of the Public Administration (Text, Custom) Ministry of Finance +7 Ministries (Presidency, Infrastructure, Health, Ministry of Public Administration, Petroleum, Mines and Urban and Rural Planning (Aménagement du Territoire) are interconnected A total of 17 institutions have been interconnected with the datacenter of he MFB including the specialized department of the MFB ( DGTCP, IGF, DGI, Debt Directorate), HR/Payroll, ministry of public health, petrolum, instrastructure, MFPTE, ministry of NTIC, State House, PM office... A total of 17 institutions have been interconnected with the datacenter of the MFB including the specialized department of the MFB (DGTCP, IGF, DGI, and Debt Directorate), HR/Payroll, ministry of Public health, Petroleum, Infrastructures, MFPTE, ministry of NTIC, State House, PM office... The new ToRs and RFP for the extension of the network to new ministries and At least 37 Ministries are interconnected 12/28/2015 Page 10 of 13

11 PHINDIRITBL PHINDIRITBL institutions are still awaiting the OCMP certificate of conformity. Date 31-Dec Feb Nov Dec-2016 Intermediate Result indicator Six : An M&E system, incl. institutional arrangements & information system, is adopted and implemented for PAMFIP (Text, Custom) An M&E system is in place. An M&E report for 2012 was prepared. The 2013 M&E report is under preparation. The 2013 RASEP is already published on PAMFIP website : The 2014 RASEP was in preparation at the time of the SPN mission. The 2013 RASEP is already published on PAMFIP website: The 2014 RASEP prepared is completed and adopted by the government I September 2015 and published on PAMFIP website. The 2015 M&E report is validated by end-june 2016 and published on the website Date 31-Dec Feb Nov Dec-2016 Intermediate Result indicator 7. The PAMFIP Annual Work Plan, Budget and Procurement Plan for Year N are available by end of Year N-1 (Text, Custom) The 2011 PAMFIP Annual Work Plan was approved on December 20, 2010 Intermediate indicator not achieved for 2015 budget and annual work plan annual work plan, budget as well as procurement plan were approved by the Steering committee with delay and submitted to IDA in march Intermediate indicator not achieved for 2015 budget and annual work plan annual work plan, budget as well as the revised procurement plan were approved by the Steering committee with delay and submitted to IDA in march 2015 because of lack of a dedicated Project Coordinator from September 2014 to march 2015, The draft 2016 AWPB was discussed during the SPN mission but not 2015 PAMFIP Annual Work Plan, Budget and Procurement Plan are approved by the Steering Committee by end of November PAMFIP Annual Work Plan, Budget and Procurement Plan are approved by the Steering 12/28/2015 Page 11 of 13

12 PHINDIRITBL finalized yet at end of the mission. Committee by end of November 2015 Date 31-May Feb Nov Dec-2016 Intermediate Result Indicator Eight : PEFA Report (Text, Custom) A PEFA was undertaken in 2009 ToRs of the PEFA drafted but need to be validated by the PEFA Secretariat to include the new methodology in place since january The report of the evaluation of the technical proposals finalized and sent to OCMP for the certificate of conformity. The PEFA mission is expected to start in Feb (i) 2015: The PEFA report is validated and published. (ii) A follow-up PEFA auto evaluation is undertaken and the report is available and published Date 31-Dec Feb Nov Dec-2016 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P IDA-H2920 Effective XDR % P IDA-H9490 Effective XDR % Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P IDA-H2920 Effective 24-May Dec Apr Dec Dec-2016 P IDA-H9490 Effective 12-May Jun Sep Dec Dec /28/2015 Page 12 of 13

13 Cumulative Disbursements Restructuring History Level Approved on 04-Apr-2012,Level Approved on 07-Dec-2012,Level Approved on 17-Apr-2013 Related Project(s) P TD-Public Financial Mgmt CB AF 12/28/2015 Page 13 of 13